Analyst Arun Viswanathan raised his price target on shares of the Houston-based chemicals manufacturer to US$59 from US$47, telling clients that Westlake’s management should be able to take full advantage of synergies the deal presents.

“Post deal close, we anticipate the stock will continue to march higher from here,” Viswanathan said in a research note.

The analyst also highlighted Westlake’s financial prudence and its strong balance sheet, the potential resolution if its case with the IRS to retain an MLP structure, growth projects, and the joint venture with South Korea’s Lotte Chemical.

“We believe Westlake could catch chlor-alkali momentum at the right time with (the) upcoming merger close,” he said, referring to the production of sodium chloride, which has many industrial uses.

Viswanathan also noted that while rising polyethylene prices are a near-term positive for the company, for those who anticipate lower-for-longer ethane prices, “Westlake is the way to play.”